Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Republic Services, Inc.’s (NYSE:RSG) released its most recent earnings update in December 2018, which
indicated
that the
company
experienced
a
major
headwind with earnings
declining
by
-19%.
Investors may find it useful to understand
how market analysts
predict
Republic Services’s
earnings growth
outlook
over the next
couple of
years and
whether the future looks brighter.
Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

Analysts’ expectations
for
next
year seems rather
muted,
with earnings
expanding
by a single digit 0.3%.
The following year doesn’t look much more exciting, though earnings does reach US$1.2b in 2022.

NYSE:RSG Future Profit February 16th 19

Even though
it’s
informative understanding
the rate of growth
each year
relative to today’s
level,
it may be more
beneficial
evaluating
the rate at which the
company is
moving
every year, on average.
The benefit
of this
approach
is that
it ignores near term flucuations and accounts for the overarching direction of Republic Services’s earnings trajectory over time,
which may be more relevant for long term investors.
To compute
this rate,
I’ve appended
a line of best fit through
analyst consensus of forecasted earnings.
The slope of this line is the rate of earnings growth, which in this case is 4.0%.
This means,
we can
presume
Republic Services
will grow its earnings by 4.0% every year
for the next couple of years.

Next Steps:

For Republic Services,
I’ve compiled
three
fundamental
aspects
you should
look at:

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

These great dividend stocks are beating your savings account

Not only have these stocks been reliable dividend payers for the last 10 years but with the yield over 3% they are also easily beating your savings account (let alone the possible capital gains). Click here to see them for FREE on Simply Wall St.

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.

RSG’s investment overview

RSG’s Competitors

About Us

Become a better investor Simply Wall St is an award winning start-up aiming to replace human stockbrokers by providing you with high quality financial data and analysis presented in a beautiful visual way everybody can understand, at a fraction of the cost (try our FREE plan).

Any advice contained in this website is general advice only and has been prepared without considering your
objectives, financial situation or needs. You should not rely on any advice and/or information contained in
this website and before making any investment decision we recommend that you consider whether it is
appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain
financial services from us. Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised
Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No.
337927).